10 Best Innovative Stocks to Invest in According to Hedge Funds

7. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 120

Micron Technology, Inc. (NASDAQ:MU) ranks seventh on our list of the best innovative stocks according to hedge funds. Its primary offerings include memory and storage products.

In the fiscal year 2024, Micron Technology, Inc. (NASDAQ:MU) grew its revenue by 62% and gross margins by more than 30 percentage points, driven by growth in its data center and automotive segments. During the year, the company invested $8.1 billion in capital expenditures and expects CapEx to be considerably higher in 2025.

Speaking of artificial intelligence, on October 15, Micron Technology, Inc. (NASDAQ:MU) launched a new portfolio of memory solutions that are capable of fueling the new wave of AI PCs. Its corporate vice president, Dinesh Bahal, stresses the need for a memory paradigm shift as AI takes flight. To align with his stance, Micron is working relentlessly to meet the need for future AI workloads. In addition to that, the company has also been working with Intel to deliver next-generation compute performance to the market.

Micron Technology, Inc. (NASDAQ:MU) is shifting its complete focus to meeting the demands for artificial intelligence and data center customers, two of the fastest-growing industries at the moment. The company expects server unit shipments to grow significantly this year as the demand for AI servers continues to increase, positioning it as a major player in AI.

Baird Chautauqua International and Global Growth Fund stated the following regarding Micron Technology, Inc. (NASDAQ:MU) in its Q3 2024 investor letter:

“After Micron Technology, Inc.’s (NASDAQ:MU) price appreciated 54% in 1H24, investors became anxious about potential memory weakness, less clear cyclical recovery pace, and whether competitor Samsung will act rationally with capacity expansion. We maintain our long-term positive view on the industry’s demand/supply situation. We believe Micron is well positioned in technology capability, and that its margins will continue to improve.”